Berkeley Mineral Resources Regulatory News (BMR)

31 Mar 2006 16:09

Tecteon PLC31 March 2006 FOR IMMEDIATE RELEASE 31 March 2006 TECTEON PLC Interim Results for the six months ended 31 December 2005 Tecteon PLC ("Tecteon" or "the Company"; stock code: TEO), a leading provider ofvoice quality, comfort listening and hearing protection technologies andsolutions, announces its interim results for the six months ended 31 December2005. Highlights: • Targeted market segment identified • Voice quality technology successfully commercialised • Voice quality software for Bluetooth developed • Significant increase in turnover • Loss for the period £595,348 Post-period Events: • Licensing agreement with QSTIK for Bluetooth software solution • Qstik product, with Tecteon software, short listed as top three best inventions at Mobile Innovation Award at the GSM Association's 3GSM World Congress • Tecteon's holding in Dominion Energy PLC fully divested to provide working capital for technology of £1.6 million before expenses Masoud Alikhani, Chairman, Tecteon PLC, commented: "I stated at the year end that our strategy was beginning to pay off and thesefigures reflect that confidence. "We have now successfully commercialised the technology; the first product thatQstik launched has been nominated for a major award, and we are optimistic thatwe will see continued sales growth going forward". For further information please contact: Tecteon PLCMasoud Ahmadi, Managing Director Tel: 020 8446 5005 Bankside Consultants Tel: 020 7367 8888Michael Padley/Susan Scott Editors' Note About Tecteon PLC Established in mid 2001, with its head office in London, UK, Tecteon PLCdevelops and markets voice enhancement software technologies and algorithmsrunning on a range of DSP platforms. Tecteon technologies provide voice quality,comfort listening and hearing protection in wired and wireless voicecommunication systems, ranging from peripheral devices to telecom infrastructureequipment, examples include: Headsets (call centre, personal, police, pilots,military, fire-fighters), telephony (business, SMEs, residential), switches(PSTN, soft-switches, gateways), digital mobile radios, mobilephones, hands-free kits and AV conferencing units. EXECUTIVE DIRECTOR'S REVIEW Voice quality market Tecteon has made further progress in the last six months by providing voicequality (VQ) technology to a specific, targeted segment of the mobile market. The Bluetooth product from Qstik is expected to be launched this spring of2006. The product has incorporated within it Tecteon's bi-directional adaptivenoise reduction, audio shock protection and speech enhancement algorithms,driven by the latest DSP (Digital Signal Processing) technology. During the period we have successfully commercialised our technology and as aresult there has been a significant increase in turnover. Tecteon is seeking toexpand its sales and marketing to fully exploit the identified marketopportunities under Tecteon's existing business model and beyond. In addition, Tecteon reduced its holding in Dominion Energy PLC from 87.5% to18.6% to provide working capital of £970,000 before expenses. On 31st March 2006the remaining 23 million shares were also sold to provide further workingcapital of £690,000 before expenses. The main development phase has now been completed and the focus going forwardwill be on commercialising our patented technology. Accordingly, we will applyto reclassify Tecteon as a telecom equipment provider. Oil & Gas Dominion Energy continues to benefit from the high oil price but is peripheralto the core business. We will therefore continue to divest the business and asannounced, we have been reducing our shareholding in Dominion Energy PLC toprovide working capital and to focus on the development of the technology. Results for the year For the six months ended 31 December 2005, the Directors report turnover of£417,396 compared with £84,689 for the same period in 2004 (turnover for theyear ended 30 June 2005 was £227,218). The unaudited loss amounted to £595,348compared to a loss of £387,277 for the same period in 2004. In the period underreview, Tecteon received £287,166 from the sale of voice quality technology,compared to £5,000 in the prior-year period. Amortisation costs in respect ofthe cost of developing the technology, included within administrative expensesamounted to £284,789 (2004: £241,902). Outlook We have again made further progress and during the period have successfullycommercialised our technology. Qstik, will significantly enhance the marketingof our technology and the first product launched by Qstik has been shortlistedfor a major international award. As promised we have also divested our shareholding in Dominion Energy and thiswill allow us to fully focus on the unique technology that we have developed. M A Alikhani 31 March 2006Executive Director GROUP PROFIT AND LOSS ACCOUNT For the 6 months ended 31 December 2005 6 months ended 6 months ended 31 December 2005 31 December 2004 £ £ TURNOVER 417,396 84,689 Depreciation and amortisation (38,422) (9,995)Other costs of sales (136,253) (40,929) ------------- -------------GROSS PROFIT 242,721 33,765Administrative Expenses (831,654) (421,139) ------------- -------------OPERATING LOSS (588,933) (387,374) Interest receivable and similar 1,259 97incomeInterest payable and similar (7,674) -charges ------------- -------------LOSS ON ORDINARY ACTIVITIES (595,348) (387,277)BEFORE AND AFTER TAXATION ======= ======= Loss per ordinary share (0.31)p (0.26)p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES For the 6 months ended 31 December 2005 6 months ended 6 months ended 31 December 2005 31 December 2004 £ £ Loss for the financial period (595,348) (387,277) Exchange differences ontranslation intosterling of net assets ofsubsidiaryundertaking (3,422) (26,962) ------------- -------------Total gains and lossesrecognisedin the financial period (598,770) (414,239) ======= ======= GROUP BALANCE SHEET As at 31 December 2005 31 December 2005 31 December 2004 £ £ FIXED ASSETS Intangible fixed assets 2,558,130 2,562,748Tangible fixed assets 525,123 560,305Investment - trade 50,000 - ------------- ------------- 3,133,253 3,123,053 CURRENT ASSETSDebtors 425,159 141,218Cash at bank and in hand 464,509 47,153 ------------- ------------- 889,668 188,371 CREDITORS: amounts falling duewithin one year (1,852,537) (1,061,498) ------------- -------------NET CURRENT LIABILITIES (962,869) (873,127) ------------- ------------- TOTAL ASSETS LESS CURRENT 2,170,384 2,249,926LIABILITIES ======= ======= CAPITAL AND RESERVES Called up share capital 9,709,770 9,114,738Share premium account 2,705,939 1,820,872Merger reserve 1,824,000 1,824,000Exchange reserve (139,107) (163,542)Profit and loss account (11,930,218) (10,346,142) ------------- -------------SHAREHOLDERS' FUNDS 2,170,384 2,249,926 ======= ======= Equity minority interest 86,816 45,469Non-equity shareholders' funds 195,799 195,799Equity shareholders' funds 1,887,769 2,008,658 ------------- ------------- 2,170,384 2,249,926 ======= ======= GROUP CASH FLOW STATEMENT For the 6 months ended 31 December 2005 6 months ended 6 months ended Note 31 December 2005 31 December 2004 £ £Net cash inflow/ (outflow) fromoperating activities (317,847) 6,292 ------------- -------------CAPITAL EXPENDITURE ANDFINANCIAL INVESTMENTPurchase of investment (303,105) (392,519) ------------- -------------NET CASH OUTFLOW FOR EXPENDITUREAND FIANCIAL INVESTMENT (303,105) (392,519) ------------- ------------- CASH OUT FLOW BEFORE FINANCING (620,952) (386,227) FINANCINGIssue of ordinary shares 972,100 403,437 ------------- -------------NET CASH INFLOW FROM FINANCING 972,100 403,437 ------------- ------------- (DECREASE) INCREASE IN CASH 351,148 17,210 ======= ======= RECONCILIATION OF NET CASH FLOWTO MOVEMENT IN NET DEBT (Decrease) in cash 351,148 17,210 ------------- -------------Movement in net funds during the 351,148 17,210year Net funds at 1 July 2005 113,361 29,943 ------------- -------------Net funds at 31 December 2005 464,509 47,153 ======= ======= Reconciliation of operating lossto net cash outflow fromoperating activities Operating loss (595,348) (387,277)Depreciation - ordinary 38,422 28,334- amortisation 284,789 241,902Decrease/(increase) in debtors (169,197) 166,135Increase in creditors 126,907 (15,840)Foreign currency translation (3,420) (26,962)differences ------------- -------------Net cash inflow/(outflow) fromoperating activities (317,847) 6,292 ======= ======= Notes to the financial statements 1. Basis of preparation The interim report, for a 6 month period, which was approved by the directors on 30 March 2006, does not comprise full accounts within the meaning of the Companies Act 1985. The interim financial information is not audited. In all other respects the interim financial information has been prepared on a consistent basis using the same accounting policies set out in the audited accounts for the year to 31 December 2005. 2. The Directors do not recommend the payment of a dividend. 3. The loss per share of 0.31p (2004: loss 0.26p) has been calculated on the basis of the loss of £595,348 (2004: £387,277) and on 194,766,878 (2004: 146,717,312) ordinary shares, being the weighted average number of ordinary shares in issue during the period ended 31 December 2005. This information is provided by RNS The company news service from the London Stock Exchange